Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment his department has made of the counterparty-risk characteristics of monetary gold compared with foreign-currency securities held within the UK’s official reserves.

The Exchange Equalisation Account (EEA) has held 9.98 million ounces of gold since March 2002. The Government has no plans to permanently change the stock of gold it holds.

HM Treasury and the Bank of England agree the strategic asset allocation of EEA annually. The allocation is determined in line with the EEA’s policy objectives and its investment principles of readiness, risk tolerance and optimising risk-adjusted return.

Gold remains an important component of the EEA’s diversified portfolio.